The Elite Ayrshire Business Circle

The Elite Ayrshire Business Circle

Tuesday, 16 December 2008

Frazer Coogans Solicitors offer mis-sold
PPI policy compensation claim service

AYR-based Frazer Coogans Solicitors have announced that they can offer a service to clients who may have been wrongly sold Payment Protection Insurance (PPI) policies, and where appropriate to institute compensation claims procedures.

Frazer Coogans associate solicitor Stuart Paterson (pictured above) explains: “It has come to light in recent months that a large number of Payment Protection Insurance (PPI) policies have been mis-sold to unsuspecting consumers over a long period of time.

“These policies are usually associated with personal loans and credit cards, and are often sold to borrowers without their knowledge, or at the very least without them being made fully aware of the details of the policy and whether it is suitable for them.

“We are looking into this area, as in these times of financial stress many people could be entitled to recover money which is rightfully theirs from some of the biggest financial institutions in the United Kingdom.”

Mis-selling occurs on the most part either by the selling agent not making specific enquires about the borrowers personal background (e.g. employment or medical conditions) or by the selling agent not advising the borrower that the policy was optional.

Those with the best chances of success are those who took out their policy within the last six years or those who are either still using their policy or whose policy ended within the last six years. Outwith that timescale unless they have the original paperwork it will be difficult to succeed.

Stuart Paterson concludes: “Many of the main providers are paying out without too much fuss, both from an economic perspective and because they are aware of the mis-selling and have already been fined for it. It is hoped therefore that the whole process can be completed within two months. We offer potential claimants and initial discussion free of charge to enable us to assess whether they have a valid claim.”

“In relation to loans an average refund could be in the region of £1,000 - £2,000 and with credit cards around £500.”

The Government’s Competition Commission recently announced plans to end the hard-sell of expensive Payment Protection Insurance (PPI) alongside loans, credit cards and mortgages.

PPI is supposed to be a safety net in case borrowers suddenly lose their income through unemployment or ill-health.

The Competition Commission wants the way Payment Protection Insurance is sold to be revised, as it has become notorious for high costs, widespread mis-selling and the failure of banks and insurance companies to pay out when claims are made. The Commission have already issued substantial fines against several major companies (see below)

Sales of PPI are a money-spinner for banks and insurance companies. There are more than 13million policies currently in existence - generating an annual premium income of around £5.5billion.

However, the Commission believes that these premiums are too high and the industry is earning excess profits of £1.4billion a year.

In future, banks will be banned from selling PPI policies alongside new loans and credit cards - cutting off a hugely lucrative flow of cash.

Instead, they will have to wait at least 14 days after a loan has been sold to offer PPI - allowing customers to shop around.

Companies Already Fined by the Competition Commission
for mis-selling PPI policies:

Alliance & Leicester
Parks of Hamilton
Land of Leather
GE Capital Bank Ltd
Capital One
HFC Bank
Regency Mortgage Corporation


Frazer Coogans Solicitors
Dalblair House
46 Dalblair Road
Ayr KA7 1UQ
Ayrshire, Scotland

Contact: Norman Geddes, Senior Partner
Tel: 01292 280499
Fax: 01292 611645


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